207 A failure to pay taxes could result in liens frustrating the deleveraging

207 a failure to pay taxes could result in liens

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207 A failure to pay taxes could result in liens, frustrating the deleveraging purpose of bankruptcy. 201 See, e.g. Jeff Amy, Deposed Arby's owner says it's not his fault that workers weren't paid , P RESS - R EGISTER (Oct. 14, 2010) . 202 Up to 47 corporate employees, including two high level executives lef t during Borders’ Chapter11 case, causing serious staffing issues. Jason Boog, Borders Has Lost 47 Corporate Employees Since Bankruptcy , G ALLEYCAT (Apr. 14, 2011) - corporate-employees-since-bankruptcy_b27761 . 203 M OTION TO A UTHORIZE / D EBTORS ' M OTION P URSUANT TO 11 U.S.C. §§ 105( A ), 363( B ), AND 507 AND F ED . R. B ANKR . P. 6003 AND 6004 (I) A UTHORIZING THE D EBTORS TO P AY C ERTAIN E MPLOYEE O BLIGATIONS AND M AINTAIN AND C ONTINUE E MPLOYEE B ENEFITS AND P ROGRAMS AND (II) F OR B ANKS TO H ONOR AND P ROCESS C HECKS AND T RANSFERS R ELATED TO S UCH O BLIGATIONS , In re Blockbuster, Inc. at 13-14. ( No. 9 ). 204 A FFIDAVIT OF J EFFERY J. S TEGNEGA , In re Blockbuster, Inc. at 38 . 205 I NTERIM O RDER SIGNED ON 9/23/2010 (I) A UTHORIZING THE D EBTORS TO P AY C ERTAIN E MPLOYEE O BLIGATIONS AND M AINTAIN AND C ONTINUE E MPLOYEE B ENEFITS AND P ROGRAMS AND (II) D IRECTING B ANKS TO H ONOR AND P ROCESS C HECKS AND T RANSFERS R ELATED TO S UCH O BLIGATIONS , In re Blockbuster, Inc., Case No.1:10-bk-14977 (Bankr. S.D.N.Y. 2010). ( No. 52 ). 206 F INAL O RDER SIGNED ON 10/20/2010 (I) A UTHORIZING THE D EBTORS TO P AY C ERTAIN E MPLOYEE O BLIGATIONS AND M AINTAIN AND C ONTINUE E MPLOYEE B ENEFITS AND P ROGRAMS AND (II) D IRECTING B ANKS TO H ONOR AND P ROCESS C HECKS AND T RANSFERS R ELATED TO S UCH O BLIGATIONS , In re Blockbuster, Inc., Case No.1:10-bk-14977 (Bankr. S.D.N.Y. 2010). ( No. 392 ). 207 M OTION TO A UTHORIZE / D EBTORS ' M OTION P URSUANT TO 11 U.S.C. §§ 105( A ), 363( B ), 507( A )(8), AND 541 AND F ED . R. B ANKR . P. 6003 AND 6004 R EQUESTING A UTHORITY TO P AY P REPETITION T AXES AND A SSESSMENTS , In re Blockbuster, Inc., Case No.1:10-bk-14977 (Bankr. S.D.N.Y. 2010). ( No. 10 ) Such taxes include sales, use, franchise, income, real and personal property, and annual report taxes, in
25 Another important aspect of taxes, for both mega-corporations like Blockbuster and individuals with a modest net worth, is the ability to realize the benefits of losses and credits. Blockbuster filed a motion to implement procedures to protect the potential value of its net operating tax loss carryforward amounts, net unrealized built-in losses in its assets, and certain other tax and business credits. 208 Blockbuster was concerned with transactions that could pose a serious risk under change of ownership tests, which could destroy the company’s tax attributes. 209 These tax attributes, according to Blockbuster, were valuable assets. 210 Additionally, Blockbuster attempted to carry on in the ordinary course of business through Chapter 11 was requesting the authority to continue selected customer programs.

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